Companies in Australia and New Zealand (ANZ), and in fact, across the globe, are moving beyond traditional cost-cutting measures and seeking strategic partnerships, which has also led to an evolution in the role of Business Process Outsourcing (BPO). The old status quo of large-scale layoffs during economic uncertainties due to market conditions, or to save costs by outsourcing the processes to a provider, is changing. BPOs continue to take over processes but are more inclined to be business transformation partners.
One outcome of this pivot is the emergence of rebadging as a talent-preservation strategy. Rebadging involves transferring a company’s employees to the payroll of a third-party BPO, thereby retaining their skills and institutional knowledge even as functions are outsourced.
This approach allows firms to remove certain costs from their balance sheet by moving from a capital expenditure model to an operating expense model. It helps in improving financial metrics like return on assets and equity. More importantly, it treats employees as valuable assets rather than expendable costs.
Strategic shifting of non-core functions
For many enterprises, the priority is to double down on core competencies and offload non-core functions in a considerate way. A study by Harvard Business Review found that 81% of companies believe refocusing on core operations will drive them to shed non-core functions. Rebadging in ANZ has become a preferred method, as it moves from shedding to realigning. It allows firms to outsource peripheral or support processes, strategically and empathetically.
This way, the organisation can concentrate on strategic growth areas while ensuring that the people managing non-core tasks continue to do so under a different payroll. Companies may identify functions not central to their market differentiation (e.g., routine customer service, back-office processing, certain information, and technology support) and transition those teams to a BPO known for excellence in that domain.
Business transformation partners can transform faster than an organisation, from technology deployments to structural changes.
Advantages of rebadging during economic uncertainties
Maintaining a consistent customer experience
One of the greatest advantages of rebadging in ANZ is that it avoids the service disruptions often associated with outsourcing transitions. In traditional outsourcing, handing off a function to a new enterprise may result in people with limited or no knowledge of the process or products taking over the work. The strategy increases the risk of mistakes or slowdowns as people learn to navigate customer queries and concerns. With rebadging, an enterprise’s trained, experienced, and expert employees continue in their roles, providing seamless service to customers.
From the customers’ standpoint, there is no change in the services, which means the brand experience continues at the same level. Customer experiences (CX) quality and productivity do not suffer as employees’ deep familiarity with the company’s products, systems, and culture carries over. BPO rebadging is also a buffer against morale problems that could indirectly affect customers, because rebadged employees have job security. And since they see the company’s commitment to them, they are more likely to stay engaged and motivated.
Also read: A synopsis of TP’s Global Insights survey: Understanding evolving customer expectations
Access to advanced technology and deep industry expertise
Another compelling reason business leaders turn to BPO rebadging arrangements is to gain immediate access to advanced technologies and specialised domain expertise that might be lacking internally. World-class BPO providers invest heavily in cutting-edge tools (such as artificial intelligence-driven customer service platforms, analytics suites, and automation software) and cultivate deep industry-specific knowledge by working with numerous clients.
Rebadging a team to a capable BPO effectively allows organisations to plug their operations into this well of innovation and expertise. This is especially evident in CX operations. Many product-centric companies simply do not have the strengths that BPOs possess in CX operations.
Rebadging allows companies to bank on their existing employees’ knowledge, while capitalising on the technology and deep industry expertise of BPOs: the best of both worlds.
Also read: Is using AI in customer service a smart choice?
Emphasis on strategic value over cost-cutting
In the past, cost reduction was the primary rationale for outsourcing. Today, a rebadging BPO partnership can help companies innovate faster, respond to market changes, and improve performance. Given the importance most organisations now place on customer experience, customer service becomes more important.
In this context, contact centres are not just cost centres. There is far greater value that can be unlocked with the right expertise. Rebadging fits perfectly into this value-over-cost narrative. Outsourcing today is not simply about choosing a partner; it’s about orchestrating an entire metamorphosis of business operations and processes” to unlock long-term value.
The TP advantage
At TP in ANZ, we ensure rebadging begins with a robust change management and communication plan for employees. It is accentuated by our commitment to leveraging the latest technologies like Agentic AI to automate manual tasks and ensure no gap in customer experiences.
From managing experiences to streamlining processes, TP in ANZ is a leading business transformation partner that can help you stay ahead.
Advantages of rebadging with TP in ANZ
Conclusion
Rebadging with BPO partners has become a powerful strategy for companies to provide a consistent brand experience, remain lean, and focus on core competencies. When costs need to be cut, the first knee-jerk reaction of layoffs no longer has a role to play.
Rebadging is the strategic manoeuvre to build employee morale and ensure customer happiness. It requires a partner who understands business processes and can bring out the big guns to keep the pace moving without a glitch. It is therefore essential to evaluate potential partners for their experiences in similar transitions and their track record in maintaining service levels during large-scale workforce integrations.
Companies must approach rebadging not as a transactional shift but as the beginning of a strategic partnership.
